Hello how are you all friends I hope all my friends are well and well and busy with their work. Today I am joining Steam Crypto Academy Season Four Class. Which is the first week of class and I hope I can do better.

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Q No.1- Explain the spread of bidding.

Here I will tell you what is Bid and Ask. Let me tell you about the bid first. The highest price that a buyer is willing to pay for an item is called the bid price. The lowest price at which a seller is willing to sell an item is called the ask price.

Ask Price is always higher than Bid Price. For example, if you want to sell dollars from a broker, he will buy at a lower price than you. If you want to get dollars from a broker, he will charge you more.

Ask bid spread:
Ask for Bid Spread is a requirement that occurs when there is no agreement between the seller and the buyer. Which means both the seller and the buyer are not ready. Not everyone can break the rules. In other words, we can define it as the space between the bid price and the asking price, which you can see in the screenshot below. Which is marked. The lowest price makes the bid higher than the price. Both buyers and sellers are not in a position to trade at the place of bidding.

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Q No.2- Why is it important to spread the word in the market?

Bidding is a concept often used to determine liquidity in markets. Supply-demand balance in the market is very important so that a product can be traded quickly. When this balance is reached, there is liquidity in the market. There are many buyers and sellers in the liquid market. In this case, if the bid price and the ask are close to each other, then the difference between the two prices will be less. As we explained in the previous question, the difference between these two prices is called the bid spread. Therefore, in the liquid market, the spread of bidding will be smaller.
The opposite is also true. If the bid spread in the market is very high then buying and selling in this market is not easy. So this market is an irrational market.

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Q No.3- If the bid price of Corrupt X is $ 5 and the asking price is $ 5.20.

a.) Calculate the bid spread.

Ask bid spread = ask price - bid price.
Bid Spread = $ 5.20 - $ 5.
Ask bid spread = $ 0.2

B.)Calculate the bid spread in percent.

Spread=(spread/ask price)x100.
Spread = ($ 0.2 / $ 5.20) x 100.
Spread = 3.85

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No.4- If the cryptocurrency Y bid price is $ 8.40 and the demand price is $ 8.80.

a.) Calculate the bid spread.

Ask bid spread = ask price - bid price.
Ask bid spread = $ 8.8 - $ 8.4.
Bid Spread = $ 0.4.

B) Calculate the bid spread in percent.

Spread=(spread/ask price)x100.
Spread = ($ 0.4 / $ 8.80) x 100.
Spread = 4.54

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Q No.5- In a statement, which of these assets has more liquidity and why?

The spread of Crypto X = $ 0.2 and the spread of Crypto Y = 0.4. In this case, the spread of crypto X is small. Smaller spreads indicate more liquidity. Because, buying and selling prices are close to each other, so more trade is done. Therefore, CryptoX has more liquidity.

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Q No.6- Explain sleep.

Friends, here I am telling you that the prices of crypto exchanges can change very fast. When you place a buy or sell order for a coin for X, the value of the coin may change until you place that order. This change in price is called slipage. Slippery is more common, especially in the broad bid spread. This is due to the low liquidity.In a crypto world, traders always face uncertainty. In other words, cryptocurrency trading is something we can't fully predict. With my little experience and study, I am convinced that no one in the crypto world can predict 100% of the value of any asset in the next 15 minutes. This is because the prices of crypto assets are volatile.

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Q No.7- Explain positive lubrication and negative mitigation with price examples for each.

This is the situation where the buyer / seller benefits from the positive volatility.

In positive lubrication, the coin is bought at a lower price than the ordered price. For example, we ordered a Coin A for 10. However, due to sudden fluctuations, the purchase was made at 9.9.
In this case, the positive discount would be $ 10- $ 9.9 = $ 0.1.

We ordered Coin A to sell for ڈالر 10. However, due to sudden fluctuations, the sale took place at 10. 10.01.
In this case, the positive discount would be $ 10.01- $ 10 = $ 0.1.

This is a situation where negative lubrication hurts the buyer / seller from these fluctuations.

Negative mitigation is the opposite of positive lubrication. That is, the order placed to buy a coin is placed at a higher price than the given price. For example, we ordered a Coin A for 10. However, due to sudden fluctuations, the purchase was at $ 10.01.
In this case, the negative reduction would be $ 10.01- $ 10 = $ 0.1.

We ordered Coin A to sell for ڈالر 10. However, due to sudden fluctuations, the sale was at 9 9.9.
In this case, the negative discount would be $ 10- $ 9.9 = $ 0.1.

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Regard:

@ansardillewali